Qualify for a mortgage

Guest

Our family is moving to another state. My wife and I both have a job but only one will be able to keep the job. We are planning to sell our current house but I am wondering how will I be able to qualify for a mortgage if I don't earn. I profit from the sale is expected to be around $150,000 and we are planning to take a house in the range of $300,000 to $350,000.

jerry · Posted: Sat Nov 12, 2005 2:09 am Post subject: RE:

Hi,

Lenders determine your ability to pay off your mortgage based on your monthly housing expenses compared to your gross monthly income. And your total monthly expenses compared to your gross monthly income. In short they determine it through front and back ratio.

Without knowing your income either individually or as a couple it is hard to tell whether you will be able to afford a house in that price range.

Thanks,
Jerry

Guest

Thanks jerry for that answere but what is front and back ratio?

Samantha · Posted: Sat Nov 12, 2005 3:19 am Post subject: RE

Hi James_Lary,

Welcome to MortgageFit Forums,

Front-end and Back-end or debt to income ratios help the lender in determining whether the borrower can pay off the loan.

For more information on this topic please visit the section on Front-end and Back-end Ratios.

God Bless You,

Thanks,
Samantha

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